Bearer shares are unregistered securities, meaning ownership is determined by physical possession of the share certificate rather than being recorded in a shareholder register.
Why is Option B Correct?
If the physical certificate is lost or stolen, the holder loses legal ownership, as no record of ownership exists.
Unlike registered shares, where ownership is recorded with a company or broker, bearer shares do not have a recovery process.
Why Not Other Options?
A (Not being publicly named) → While bearer shares offer anonymity, the major risk is loss of ownership.
C (Difficult to value) → They can still be valued based on the issuing company’s performance.
D (Not possible to sell part of the holding) → Bearer shares can be sold partially, like other shares.
Chosen Answer:
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